Charlie Munger Found It Weird How Life Was 'Pretty Brutal And Short' – But Now Things Are 600% Better And Yet 'People Are Less Happy'

Charlie Munger, the legendary investor and longtime business partner of Warren Buffett, left behind not just financial wisdom but also deep reflections on life and happiness. In his final public appearance at the 2023 Daily Journal annual meeting, Munger shared a powerful observation that struck a chord with many:

"People are less happy about the state of affairs than they were when things were way tougher."

Munger, who lived through the Great Depression, found it perplexing that despite an estimated 600% improvement in living standards, people seem unhappier today. 

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"It's weird for somebody my age because I was in the middle of the Great Depression when the hardship was unbelievable," he said, referencing a time when basic conveniences like air conditioning and modern medicine were unheard of. He called life "pretty brutal, short, limited and what have you." 

So, what's changed? According to Munger, envy is one of the biggest culprits. He pointed out that modern life's comforts and advancements haven't erased people's tendency to compare themselves to others. Social media, in particular, amplifies this phenomenon by showcasing carefully curated, picture-perfect versions of life. Studies back this up, with about 75% of people reporting feelings of envy at least once a year, often sparked by platforms like Instagram or Facebook.

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Munger wasn't alone in this perspective. Harvard psychologist Steven Pinker has long argued that the quality of life has dramatically improved over the past two centuries, citing longer life spans and reduced global poverty as evidence. However, Munger believed that many overlook these improvements because they're too focused on what others have. As he put it, "I can't change the fact that a lot of people are very unhappy and feel very abused after everything's improved by about 600% because there's still somebody else who has more."

Warren Buffett shared similar sentiments in a 2022 interview with Charlie Rose, noting that even the least affluent in modern society live better than billionaires of the past like John D. Rockefeller. Advancements in medicine, education and technology have given today's average person access to luxuries that were unimaginable a century ago.

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But Munger didn't shy away from acknowledging societal challenges, either. While he critiqued political figures who advocate for taxing the ultra-wealthy, he also recognized the persistence of poverty and inequality. 

Recent data from the U.S. Census Bureau highlights the persistence of inequality, with the Supplemental Poverty Measure (SPM) – which accounts for factors like living expenses and government aid – rising to 12.9% in 2023, up from 12.4% in 2022.

Ultimately, Munger's reflections challenge us to consider why societal progress hasn't translated to greater happiness. Are we too focused on comparing ourselves to others? Or have we lost sight of how far we've come? His insights remind us that while the world keeps improving, true contentment might require a shift in perspective.

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